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Monday, February 3, 2014

FBI: 2 US Citizens Flee To Israel After Being Accused Of $33M Bank Fraud

Aryeh Greenes

LOS ANGELES — The FBI says two US citizens have fled to
Israel as the feds were investigating their part in a $33 million bank fraud.

Aviv Mizrahi, AKA Aviv ShohamSchwartz, 53; and Aryeh
Greenes, 58, both residents of the Fairfax District of Los Angeles, were
charged Thursday in an indictment returned by a federal grand jury in United
States District Court in Los Angeles.

The 34-count indictment charges the men with bank fraud and
making false statements in loan applications.

Mizrahi faces a maximum statutory sentence of 1,020 years in
federal prison if convicted. Greenes faces a maximum statutory sentence of 330
years in federal prison if convicted.

According to the indictment, Mizrahi operated companies
including New Electronic, Inc. and Tech Club, Inc. that operated as wholesalers
of consumer electronics, including televisions and DVD players. Mizrahi also
operated a retail store in Culver City known as Star Club.

According to the
indictment, Mizrahi and Greenes, the CFO of New Electronic and Tech Club, used
fake financial records over a four year period to obtain a $28 million line of
credit from United Commercial Bank and a $3 million line of credit from
TomatoBank.

Mizrahi allegedly used fake records to obtain another $5 million
line of credit from Security Pacific Bank. According to the indictment, the
banks suffered over $33 million in losses due to the fraudulent scheme operated
by Mizrahi and Greenes.

Security Pacific Bank and United Commercial Bank failed and
were placed into the hands of the Federal Deposit Insurance Corporation (FDIC).
The bank failures cost the FDIC losses in excess of $1 billion.

Mizrahi was previously charged with bank fraud in an
indictment returned under seal by a federal grand jury in May 2012.